Essential Guide To Buying A Franchise
Read our guide below to see if you are making the right decision. We offer both practical commercial advice as well as legal advice.
1. Which Franchise?
Usually prospective franchisees come to us with a particular franchise in mind. The first thing we always ask is - why select that one? There are lots of franchisors who would no doubt like to have you as a franchisee. Before you buy a franchise you are in a real position of power. If you decide that you want to purchase a franchise repairing car dents or selling promotional merchandise, check out all franchisors and compare their schemes. Whatever the franchisor says, they rarely sell a franchise very quickly, so some extra research time spent before you buy could save you a lot more than time in the long run.
2. Do Your Homework
Once you have narrowed down your choice of franchisor, you should do your homework thoroughly. In particular you should ask to speak to other franchisees of the business who are up and running and see whether they are happy with the way things are going and the level of support they get from the franchisor. Also check out potential demand in the territory you have been offered. If it is already saturated with products or services similar to the ones you will be selling forget it or ask for another territory. Attend some business networking meetings and discuss your idea with people already in business. Often friends and family are not the best people to advise you so some independent advice from someone who does not know you well could be invaluable.
3. Do The Figures Add Up?
Ask your accountant to check out the projected figures to see if they are realistic (if you do not have one we can put you in touch with an excellent one). If there is insufficient profit margin once you have paid the fees to the franchisor then regardless of the effort you put in you are not likely to have a successful business. Also check with existing franchisees that the projected figures are achievable. You need to be confident that you can make a living from the franchise.
4. Negotiate On Price
Once you have done your homework and are sure that you want to go ahead we can give you advice on how to secure the best deal on the terms from the Franchisor. Some franchisors will say "take it or leave it" but others , in particular more recently established Franchisors may be open to negotiate on the price. They may be open to you paying the initial fee by instalments or may even make a reduction in the initial fee.
5. Negotiate The Territory
You might also be able to increase the size of your territory by negotiation in order to maximise the potential profits of the business.
6. Take Legal Advice Before It Is Too Late
We can advise you as to the practical implications of the legal terms so that even in "take it or leave it" cases you will be going in with your eyes wide open and aware of all the risks.
Many of the enquiries we get are from current franchisees who were not advised when they took on the franchise and are now desperately seeking to leave it. With our advice before you take on a franchise we can save you both time and expense. Quite often our advice will more than pay for itself by better terms negotiated or a risky franchise avoided. We are keen that you don't make a big mistake.
If you are obliged to take on property with the franchise we can take care of all of the legal requirements.
Make A Free Franchise Enquiry
Please call us on 01707 647 088 or complete a Quick Enquiry and we will soon be in touch with you.
FREE GUIDE; 7 COSTLY FRANCHISE BUYING MISTAKES
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Free Franchise Enquiry?
Please call us on 01707 647 088 or complete a Quick Enquiry and we will soon be in touch with you.